S&P Hits Record High Despite VIX Flash Smash

Tyler Durden's picture

Was it ever in doubt? Bad news is great news for China and Europe and good new is great news for US because no matter what Yellen will go full dovetard tomorrow - at least that appears to be the total consensus view as the S&P hit record highs and bond yields plunge. Volume went from dismal to well dismal-er (we've run out of adjectives) to the lowest non-holiday of the year as we note Trannies (-0.25%) and Nasdaq lagged today. Credit markets snapped higher (tighter) today but remain less exuberant than stocks on the week. Gold staggered lower (-2% on the week) back under $1280 even as The USD rolled over notably on the day led by EUR strength. Treasuries rallied (30Y -3bps  and 10Y <2.40%) in the face of equity strength. VIX flash-smashed early on from 11.5 to over 13 (cracking stocks lower) but that was a great buying opportunity into J-Hole...

 

Yeah baby...

 

From the Putin military drill is over lows... Trannies and Nasdaq have outperformed...

 

Perhaps worryingly - the last few weeks best performers - Trannies and Nasdaq - underperformed today...

 

Year to Date - Healthcare (helpe by Biotechs) lead, Homebuilders still lag...

 

VIX dropped to 11.5 but not before flash-smashing over 13 early on...

 

Hhmm...

 

Treasuries rallied on the day led by the long-end, as 30Y is now 4bps lower than pre-hawkish FOMC minutes...

 

Gold has had a bad week, oil has recovered some losses today as Copper held yesterday gains despite shitty China PMI data..

 

Even as The USDollar rolled over on broad weakness led by EUR strength...almost giving back all of the FOMC Minutes gains

 

So - the last week or two has been remarkable in stocks... volume has collapsed, credit has diverged, VIX flash-smashed today, leaders were laggards today, the USD stopped surging today, Treasury yields rolled lower today, and oil started rising again... things changed today - marginal hedges being lifted into tomorrow or turning point?

 

Charts: Bloomberg

Bonus Chart: Don't believe the hyope in BofA...